Staffan Sandström Bergforskdagarna May. Boliden Mines Continuing to deliver stable performance

Transcription

1 Staffan Sandström Bergforskdagarna May Boliden Mines Continuing to deliver stable performance

2 Growth Philosophy Increasing value step-by-step Stable & efficient operations Organic growth investments Selective acquisitions Bergforskdagarna

3 Increasing value from our mines Operational excellence Focusing on profitable growth Bergforskdagarna

4 Strong technology know-how Concentrator technology Mine design Water and tailings management Mobile control systems Bergforskdagarna

5 Tonnes per man hour Tonnes per man hour Strategy leading to world-class productivity 4 Zinc Underground mines Copper Open pit mines with concentrator 40 Garpenberg 35 Aitik Tara Million tonnes milled per year Million tonnes milled per year Source: Wood Mackenzie, Graph to the right includes open pit and mines with mix open pit-underground. Bergforskdagarna

6 Aitik Boliden Area Aitik Kylylahti Boliden Area Boliden Area Garpenberg Tara Garpenberg Boliden Area Tara and improved positions for Mines Zn Zn Cu 2005 Cu 2015 Note: C1 cast cost. Pro Rata Boliden Area and Garpenberg. Normal costing Aitik, Kylylahti and Tara Source: Wood Mackenzie Q4 2015, cash cost for Kylylathi calculated by Boliden

7 Creating value through operational excellence Production control Mine automation Mineral process development Preventive maintenance Bergforskdagarna

8 Growth Philosophy Increasing value step-by-step Stable & efficient operations Organic growth investments Selective acquisitions Bergforskdagarna

9 Garpenberg expansion ramped-up on time & capex kton Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Ore production Milled production Bergforskdagarna

10 Revised plan for Aitik focus on availability New environmental permit Q Reserve Cu grade 0.23 (0.22) Extended reserve life New crusher set-up Surface crusher commissioning 2018 In-pit crusher decision after 2020 De-sulphurization after 2020 (if needed) Revised production plan Copper grades 2016: : Above reserve grade 45 Mton 2020 Bergforskdagarna

11 KiD2 - CRUSHER STATION MAINTENANCE MINING TRUCKS NEW CRUSHER STATION EXTENDED BELTCONVEYOR EXISTING CRUSHER STATION Bergforskdagarna

12 New surface crusher to improve reliability Construction , commissioning 2018 Built in double-crusher Facilitate maintenance Capacity 8,000 ton/h Bergforskdagarna

13 This plan delivers improved control Higher availability from the mine Higher visibility in production, grade and cost Remaining capex of 1 BSEK ( ) New surface crusher Water treatment Power supply Bergforskdagarna

14 Increased mine lives Our largest mines have long life and competitive positions Reserve life, years Aitik Boliden Area Garpenberg Kylylahti Tara

15 Growth Philosophy Increasing value step-by-step Stable & efficient operations Organic growth investments Selective acquisitions Bergforskdagarna

16 M&A strategy Producing mines and projects Copper and zinc with by products Synergies Mid size assets Bergforskdagarna

17 Kevitsa early stage mine with high potential Open pit mine, early stage Production started Q Norway Project under ramp-up 6.7 Mton milled tonnage in kton Cu and 9 kton Ni in concentrate in 2015 Revenue breakdown Copper ~40%, Nickel ~40%, PGM ~20% Aitik Sweden Kevitsa Finland Russia Long reserve life High potential in unexplored geological region Bergforskdagarna

18 Kevitsa consistent with strategy 1 Excellent operational and geographical fit 2 Early stage mine with expansion potential in attractive geological region 3 Establish in-house nickel feed base load and increase attractive copper feed 4 Timing Bergforskdagarna

19 1 Excellent operational and geographical fit Kevitsa Synergies in operations Leverage on substantial in-house know-how Geological similarities with Sweden Arctic open-pit expertise similar set-up as Aitik Logistic benefits with smelters Scale in line with other Boliden mines Strengthens Boliden s strategic presence in Finland Bergforskdagarna

20 2 Early stage mine with expansion potential in attractive geological region Early stage allows flexibility to develop technical and operational set-up Large reserves allows alternative production set-ups Located in region with geological potential in northern Finland Mton NiS Cu Au Pd Pt Reserves % 0.41% 0.12 g/t 0.17 g/t 0.23 g/t Resources % 0.42% 0.11 g/t 0.15 g/t 0.20 g/t 1) As of 31 December 2014, resources are inclusive of reserves Note: NiS shows nickel in sulfide ore. Bergforskdagarna

21 4 Timing Boliden has managerial capacity available to integrate and develop Kevitsa Latest expansion Garpenberg finalised in Q Integration of acquired Kylylahti finalised in 2015 Rare opportunity available

22 Milestones Growth Tara AG-mill 2009 Aitik 36 expansion finalised 2010 Kankberg Gold mine and Tellurium 2012 Garpenberg expansion finalised 2014 Kylylahti acquisition 2014 Kevitsa acquisition 2016 Aitik 45 ongoing

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